If Crisp & Green transfers the Franchise Agreement, what happens to their obligations and liabilities?

According to Crisp & Green's 2024 Franchise Disclosure Document, specifically the New York Addendum to the Area Development Agreement, Crisp & Green will not make an assignment of the agreement unless the assignee is willing and able to assume Crisp & Green's obligations under the agreement. This clause only applies to franchises offered and sold in the state of New York.

This provision protects franchisees by ensuring that if Crisp & Green transfers the Area Development Agreement to another party, that party must be capable and willing to fulfill the obligations that Crisp & Green originally held. This is particularly important for franchisees in New York, as it provides an additional layer of security regarding the stability and reliability of the franchise system.

Without this clause, Crisp & Green could potentially transfer the agreement to an entity that is not financially stable or lacks the necessary expertise to support the franchisees, which could negatively impact the franchisees' businesses. By requiring the assignee to be willing and able to assume the obligations, Crisp & Green aims to maintain the integrity of the franchise system and protect the interests of its franchisees in New York.